THE NATIONAL INSTITUTES OF DESIGN ACT, 2014 
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ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title and commencement. 
2.  Declaration of certain institutions as institutions of national importance. 
3.  Definitions. 

CHAPTER II 

THE INSTITUTE 

4.  Incorporation of Institute. 
5.  Effect of incorporation of the Institute. 
6.  Powers of Institute. 
7.  Institute be open to all races, creeds and classes. 
8.  Teaching at Institute. 
9.  Visitor. 
10.  Authorities of Institute. 
11.  Governing Council. 
12.  Term of office of, vacancies among, and allowances payable to Chairperson and other members 

of Governing Council. 

13.  Meeting of Governing Council. 
14.  Powers and functions of Governing Council. 
15.  Senate. 
16.  Functions of Senate. 
17.  Functions, powers and duties of Chairperson. 
18.  Director. 
19.  Dean. 
20.  Registrar. 
21.  Powers and duties of other authorities and officers. 
22.  Grants by Central Government. 
23.  Fund of Institute. 
24.  Setting up of Endowment Fund. 
25.  Accounts and audit. 
26.  Pension and provident fund. 
27.  Appointment of staff. 
28.  Statutes. 
29.  Statutes how to be made. 
30.  Ordinances. 
31.  Ordinances how to be made. 
32.  Arbitral Tribunal. 

CHAPTER III 

MISCELLANEOUS 

33.  Acts and proceedings not to be invalidated by vacancies, etc. 
34.  Sponsored schemes. 
35.  Power of Institute to grant degrees, etc. 

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SECTIONS 

36.  Powers of Central Government to issue directions. 
37.  Institute to be public authority under Right to Information Act, 2005. 
38.  Power of Central Government to make rules. 
39.  Transitional provisions. 
40.  Statutes and Ordinances to be published in the Official Gazette and to be laid before Parliament. 
41.  Power to remove difficulties. 

THE SCHEDULE. 

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THE NATIONAL INSTITUTES OF DESIGN ACT, 2014 

ACT NO. 18 OF 2014 

[17th July, 2014.] 
An  Act  to  declare  1[certain  institutions  of  design  to  be  institutions  of  national  importance]  for  the 
promotion  of  quality  and  excellence  in  education,  research  and  training  in  all  disciplines 
relating to Design and for matters connected therewith or incidental thereto. 

BE it enacted by Parliament in the Sixty-fifth Year of the Republic of India as follows:— 

CHAPTER I 

PRELIMINARY 
1. Short title and commencement.—(1) This Act may be called the National 2[Institutes] of Design 

Act, 2014. 

(2)  It  shall  come  into  force  on  such  date3  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint and different dates may be appointed for different provisions of this Act. 

4[2.  Declaration  of  certain  institutions  as  institutions  of  national  importance.—Whereas  the 
objects of the institutions mentioned in  the  Schedule,  are such as to  make  them  institutions  of  national 
importance, it is hereby declared that each such Institute is an institution of national importance.] 

3. Definitions.—In this Act, unless the context otherwise requires,— 

(a) ―Chairperson‖ means the Chairperson of the Governing Council nominated under clause (a) 

of section 11; 

(b) ―Dean‖, in relation to any Institute campus, means the Dean of such Institute campus; 

(c)  ―design‖  means  a  rational,  logical  and  sequential  innovative  process  for  the  purpose  of 
transferring culture to viable products and services and for providing a competitive edge to products 
and  services,  and  includes  industrial  design,  communication  design,  textile  and  apparel  design, 
lifestyle design, experiential design, exhibition design, craft and traditional sector design; 

5[(d)  ―Director‖,  in  relation  to  any  Institute,  means  the  Director  of  such  Institute  as  appointed 

under section 18;] 

6[(e)  ―Fund‖, in relation to any  Institute,  means  the  Fund  of  such  Institute as  maintained  under 

section 23;] 

7[(f)  ―Governing  Council‖,  in  relation  to  any  Institute,  means  the  Governing  Council  of  such 

Institute as constituted under section 11;] 

8[(g) ―Institute‖ means any of the institutions mentioned in column (4) of the Schedule;] 
9[(h) ―Institute campus‖ means the campus of an Institute as may be established by such Institute 

at any place within India or outside India;] 

(i) ―notification‖ means a notification published in the Official Gazette; 

(j) ―prescribed‖ means prescribed by rules made under this Act; 

1. Subs. by Act 38 of 2019, s. 2, for certain words (w.e.f.13-1-2020). 
2. Subs. by s. 3, ibid., for ―Institute‖ (w.e.f. 13-1-2020). 
3. 16th September, 2014  vide notification No. S.O. 2393(E), dated 16th September, 2014,  see Gazette of India, Extraordinary, 

Part II, sec. 3(ii). 

4. Subs. by Act 38 of 2019, s. 4, for section 2 (w.e.f. 13-1-2020). 
5. Subs. by s. 5, ibid., for clause (d) (w.e.f. 13-1-2020). 
6. Subs. by s. 5, ibid., for clause (e) (w.e.f. 13-1-2020). 
7. Subs. by s. 5, ibid., for clause (f) (w.e.f. 13-1-2020). 
8. Subs. by s. 5, ibid., for clause (g) (w.e.f. 13-1-2020). 
9. Subs. by s. 5, ibid., for clause (h) (w.e.f. 13-1-2020). 

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1[(k)  ―Registrar‖  in  relation  to  any  Institute,  means  the  Registrar  of  such  Institute  as  appointed 

under section 20;] 

2[(ka) ―Schedule‖ means the Schedule annexed to this Act;] 
3[(l) ―Senate‖, in relation to any Institute, means the Senate of such Institute;]  
4[(m) ―Society‖ means any of the societies registered under the Societies Registration Act, 1860 

(21 of 1860), and mentioned in column (3) of the Schedule;] 

5[(n)  ―Statutes‖  and  ―Ordinances‖,  in  relation  to  any  Institute,  mean  the  Statutes  and  the 

Ordinances of such Institute made under this Act.] 

CHAPTER II 

THE INSTITUTE 

6[4. Incorporation of Institute.—(1) Each Institute shall be a body corporate by the same name as 

as mentioned in column (4) of the Schedule. 

(2)  Each  Institute  shall  have  perpetual  succession  and  a  common  seal,  with  power,  subject  to  the 

provisions  of  this  Act,  to  acquire,  hold  and  dispose  of  property,  both  movable  and  immovable,  and  to 

contract and shall, by the said name, sue or be sued. 

(3) The body corporate constituting each Institute shall consist of a Chairperson, Director and other 

members of the Governing Council for the time being, of the Institute. 

(4) Any Institute may establish an Institute campus at such place within India or outside India, as it 

may deem fit: 

Provided  that  each  campus  of  the  National  Institute  of  Design,  Ahmedabad,  established  before  the 

commencement  of  this  Act,  at  Bengaluru  in  the  State  of  Karnataka  and  at  Gandhinagar  in  the  State  of 

Gujarat, shall be deemed to be the Institute campus thereof. 

Explanation.—The reference in this sub-section to the commencement of this Act shall, in relation to 

the National Institute of Design, Ahmedabad, be deemed to be the 16th day of September, 2014.] 

5.  Effect  of  the  incorporation  of  the  Institute.—On  and  from  the  date  of  commencement  of  this 

Act,— 

7[(a) any reference to the Society mentioned in column (3) of the Schedule in any law or in any 
contract or other instrument shall be deemed as a reference to the corresponding Institute mentioned 
in column (4) thereof;] 

(b)  all  property,  movable  and  immovable  of,  or  belonging  to,  the  Society,  shall  vest  in  the 

Institute; 

(c)  all  the  rights  and  liabilities  of  the  Society  shall  be  transferred  to,  and  be,  the  rights  and 

liabilities of, the Institute; 

(d)  any  reference  to  any  campus  of  the  Institute,  established  before  the  commencement  of  this 

Act, shall be deemed as a reference to that Institute campus; 

1. Subs. by Act 38 of 2019, s. 5, for clause (k) (w.e.f. 13-1-2020). 
2. Ins. by s. 5, ibid. (w.e.f. 13-1-2020). 
3. Subs. by s. 5, ibid., for clause (l) (w.e.f. 13-1-2020). 
4. Subs. by s. 5, ibid., for clause (m) (w.e.f. 13-1-2020). 
5. Subs. by s. 5, ibid., for clause (n) (w.e.f. 13-1-2020). 
6. Subs. by s. 6, ibid., for section 6 (w.e.f. 13-1-2020). 
7. Subs. by s. 7, ibid., for clause (a) (w.e.f. 13-1-2020). 

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(e) every person employed by the Society, immediately before such commencement, shall hold 
his office or service in the Institute including the Institute campuses, 1*** by the same tenure, at the 
same remuneration and upon the same terms and conditions and with the same rights and privileges 
as to pension, leave, gratuity, provident fund and other matters as he would have held the same, if this 
Act had not been enacted, and shall continue to be so, unless and until his employment is terminated 
or until such tenure, remuneration, terms and conditions are duly altered by the Statutes: 

Provided that if the alteration so made is not acceptable to such employee, his employment may 
be terminated by the Institute in accordance with the terms of the contract with the employee or, if no 
provision  is  made  therein  in  this  behalf,  on  payment  to  him  by  the  Institute  of  compensation 
equivalent  to  three  months’  remuneration  in  the  case  of  permanent  employee  and  one  month’s 
remuneration in the case of other employee. 

2[Explanation I.--The reference in this section to the commencement of this Act shall, in relation 

to the National Institute of Design, Ahmedabad, be deemed to be the 16th day of September, 2014. 

Explanation II.--The reference in this section to the commencement of this Act shall, in relation 

to  the  National  Institutes  of  Design  in the  States  of  Madhya  Pradesh,  Assam,  Haryana  and  Andhra 

Pradesh, be construed as the reference to the date on which the provisions of the National Institute of 

Design (Amendment) Act, 2019 comes into force.] 
6. Powers of Institute.—(1) Subject to the provisions of this Act,  3[each Institute shall] exercise the 

following powers and perform the following duties, namely:— 

(a) to provide for instructions, research and training in the areas or disciplines relating to design 

and to nurture and promote quality and excellence thereof in such areas or disciplines; 

(b) to develop courses leading to graduate and post-graduate degrees, doctoral and post-doctoral 

distinctions and research in all areas or disciplines relating to design; 

(c) to hold examinations and grant degrees, and diplomas and other academic distinctions or titles 

in the areas or disciplines relating to design; 

(d) to confer honorary degrees, awards or other distinctions in the areas or disciplines relating to 

design; 

(e) to institute and award fellowships, scholarships, exhibitions, prizes and medals; 

(f) to fix, demand and receive fees and other charges; 

(g) to establish, maintain and manage halls and hostels for the residence of the students; 

(h) to supervise and control the residence and regulate the discipline of students of the Institute 
and to make arrangements for promoting their health, general welfare and cultural and corporate life; 

(i) to institute academic and other posts and to make appointments thereto (except in the case of 

the Director); 

(j) to frame Statutes and Ordinances and to alter, modify or rescind the same; 

(k)  to  co-operate  with  educational  or  other  institutions  in  any  part  of  the  world  having  objects 
wholly  or  partly  similar  to  those  of the  Institute  by  exchange  of faculty  members  and  scholars  and 
generally in such manner as may be conducive to their common objective; 

(l) to act as a nucleus for interaction between academia and industry by encouraging exchange of 
designers  and  other  technical  staff  between  the  Institute  and  the  industry  and  by  undertaking 
sponsored and funded research as well as consultancy projects by the Institute; 

1. The words ―located at Bengaluru in the State of Karnataka and at Gandhinagar in the State of Gujarat‖ omitted by Act 38 of 

2019, s. 7 (w.e.f. 13-1-2020). 

2. Ins. by s. 7, ibid. (w.e.f. 13-1-2020). 
3. Subs. by s. 8, ibid., for ―the Institute shall‖ (w.e.f. 13-1-2020). 

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(m) to establish, equip and maintain workshops or laboratories or studios with modern machinery 
and equipments in order to undertake scientific and technological research for creating good designs 
for the production of goods and services and to provide funds for such works and for payment to any 
person  or  persons  engaged  in  service,  training  and  research  work  whether  in  such  workshop  or 
laboratory or studio; 

(n)  to  acquire  any  patent  or  licence  relating  to  such  invention,  improvement  or  design  or 

standardisation marks whether for general or specific purposes; 

(o) to undertake consultancy in the areas or disciplines relating to design; 

(p)  to  deal  with  any  property  belonging  to,  or  vested  in,  the  Institute,  in  such  manner  as  the 

Institute may deem fit for advancing the objects of the Institute; 

(q)  to  receive  gifts,  grants,  donations  or  benefactions  from  the  Government  and  to  receive 
bequests,  donations  and  transfers  of  movable  or  immovable  properties  from  testators,  donors  or 
transferors, as the case may be; 

(r) to encourage and improve education of persons who are engaged or are likely to be engaged in 
the service, training or research activities by grant of loans, scholarships or other monetary assistance 
or otherwise; 

(s)  to  prepare,  print,  publish,  issue,  acquire  and  circulate  books,  papers,  periodicals,  exhibits, 
films, slides, gadgets, circulars and other literary undertakings, dealing with or having a bearing upon 
the subject of industrial design and allied fields; 

(t)  to  establish,  form  and  maintain  museums,  libraries  and  collections  of  literature  and  films, 

slides, photographs, prototypes and other information relating to design and allied subjects; 

(u)  to  nominate  designers,  engineers  (mechanical  or  electrical  or  civil),  architects,  craftsmen, 
technicians  or  investigators  to  study  in  India  or  outside  India  in  regard  to  the  service,  training  and 
research in such fields as the Institute may think fit; 

(v) to retain or employ skilled professional, technical advisers, consultants, workers or craftsmen 

in connection with the objects of the Institute; 

(w)  to  encourage  artisans,  technicians  and  others  with  inventive  skill  to  work  out  details  and 
specifications  of  processes,  appliances  and  gadgets  by  giving  awards,  financial  or  technical 
assistance; 

(x) to construct buildings and alter, extend, improve, repair, enlarge or modify and to provide and 

equip the same with light, water, drainage, furniture, fittings and all other accessories; 

(y)  )  to  borrow  and  raise  moneys,  with  or  without  security  or  on  the  security  of  a  mortgage, 
charge, or hypothecation or pledge of any of the movable or immovable properties belonging to the 
Institute or in any other manner; 

(z) to do all such things as may be necessary, incidental or conducive to the attainment of all or 

any of the objects of the Institute. 

(2)  Notwithstanding  anything  contained  in  sub-section  (1),  the  Institute  shall  not  dispose  of  in  any 

manner any immovable property without the prior approval of the Visitor. 

7. Institute be open to all races, creeds and classes.—(1) 1[Every Institute] shall be open to persons 
of either sex and of whatever race, creed, caste or class, and no test or condition shall be imposed as to 
religious belief or profession in admitting or appointing members, students, teachers or workers or in any 
other connection whatsoever. 

(2) No bequest, donation or transfer of any property shall be accepted by the Institute, which in the 
opinion of the Governing Council involves conditions or obligations opposed to the spirit and objects of 
the Institute. 

1. Subs. by Act 38 of 2019, s. 9, for ―The Institute‖ (w.e.f. 13-1-2020). 

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8. Teaching at Institute.—All 1[teaching at each of the Institutes] and the Institute campuses shall be 
conducted by or in the name of the Institute in accordance with the Statutes and the Ordinances made in 
this behalf. 

9. Visitor.—(1) The President of India shall be the Visitor of 2[each of the Institutes]. 

(2) The Visitor may appoint one or more persons to review the work and progress of the Institute or 
any Institute campus and to hold inquiries into the affairs thereof and to report thereon in such manner as 
the Visitor may direct. 

(3) Upon receipt of any such report, the Visitor may take such action and issue such directions as he 
considers  necessary  in  respect  of  any  of  the  matters  dealt  with  in  the  report  and  the  Institute  shall  be 
bound to comply with such directions. 

10. Authorities of Institute.—3[Each Institute shall have the following authorities], namely:–– 

(a) the Governing Council, 

(b) a Senate, and 

(c) such other authorities as may be declared by the Statutes to be the authorities of the Institute. 
11. Governing Council.—4[The Governing Council of every Institute shall consist of] the following 

members, namely:— 

(a) a Chairperson, who shall be an eminent academician, scientist or technologist or professional 

or industrialist, to be nominated by the Visitor; 

(b) the Director, ex officio; 

(c) the Financial Adviser in the Ministry or Department of the Government of India dealing with 

the National Institute of Design, ex officio; 

(d) the Joint Secretary, in the Ministry or Department in the Government of India dealing with the 

National Institute of Design, ex officio; 

(e) one representative of the Ministry or Department of  the Government of India not below the 
rank  of  Joint  Secretary  dealing  with  Higher  Education,  to  be  nominated  by  the  Secretary  of  that 
Ministry or Department, ex officio; 

(f)  one  representative  of the  Ministry  or  Department of the  Government of  India  not  below the 
rank of Joint Secretary dealing with Information Technology to be nominated by the Secretary of that 
Ministry or Department, ex officio; 

(g) one representative from the State in which the Institute campus is located, to be nominated by 

that State Government; 

(h) five professionals, one each from the fields of architecture, engineering, fine arts, mass media 

and technology, to be nominated by the Central Government; 

(i)  an  outstanding  Designer,  to  be  nominated  by  the  Visitor  in  consultation  with  the  Central 

Government; 

(j) a management expert, to be nominated by the Chairperson; 

(k) a representative of the Micro, Small and Medium Enterprises, to be nominated by the Central 

Government; 

(l)  three  persons  to  be  nominated  by  the  Senate  from  amongst  persons  recommended  by 
companies,  firms  or  individuals  who  have  provided  financial  assistance  or  contribution  to  the 
Institute: 

1. Subs. by Act 38 of 2019, s. 10, for ―teaching at the Institute‖ (w.e.f. 13-1-2020). 
2. Subs. by s. 11, ibid., for ―the Institute‖ (w.e.f. 13-1-2020). 
3. Subs. by s. 12, ibid., for ―The following shall be the authorities of the Institute‖ (w.e.f. 13-1-2020). 
4. Subs. by s. 13, ibid., for ―The Governing Council shall consist of‖ (w.e.f. 13-1-2020). 

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Provided  that  the  threshold  of  financial  assistance  or  contribution  and  other  requirements  to 

qualify for such nomination shall be such as may be provided for in the Statutes; and 

(m) Dean of each Institute campus, ex officio. 

12.  Term  of  office  of,  vacancies  among,  and  allowances  payable  to  Chairperson  and  other 
members of Governing Council.—(1) The term of office of the Chairperson or any other member of the 
Governing Council (other than an ex officio member) shall be three years from the date of his nomination. 

(2)  Save  as  otherwise  provided  in  this  section,  the  term  of  office  of  an  ex  officio  member  shall 

continue so long as he holds the office by virtue of which he is a member. 

(3) The term of office of a member of the Governing Council nominated to fill a casual vacancy shall 

continue for the remainder of the term of the member in whose place he has been nominated. 

(4)  Notwithstanding  anything  contained  in  this  section,  an  outgoing  member  shall,  unless  the 
Governing Council otherwise directs, continue in office until another person is nominated as a member in 
his place. 

(5)  The  members  of  the  Governing  Council  shall  be  entitled  to  such  allowances,  if  any,  from  the 
Institute  as  may  be  provided  for  in  the  Statutes  but  no  member  other  than  the  persons  referred  to  in 
clauses (b) and (m) of section 11 shall be entitled to any salary by reason of this sub-section. 

13. Meeting of Governing Council.—The Governing Council shall meet at least four times in a year 
at such place and time and observe such rules of procedure in regard to the transaction of business at its 
meetings, as may be determined by the Governing Council. 

14.  Powers  and  functions  of  Governing  Council.—(1)  Subject  to  the  provisions  of  this  Act,  the 
Governing  Council  shall  be  responsible  for  the  general  superintendence,  direction  and  control  of  the 
affairs of the Institute and shall exercise all the powers of the Institute not otherwise provided for by this 
Act, the Statutes and the Ordinances, and shall have the power to review the acts of the Senate. 

(2) Without prejudice to the provisions of sub-section (1), the Governing Council shall–– 

(a)  take  decisions  on  questions  of  policy  relating  to  the  administration  and  working  of  the 

Institute; 

(b) take  decision on  the  establishment  of  new  Institute  campus  at  any  place in  India or  outside 

India; 

(c) institute courses of study at the Institute; 

(d) institute academic and other posts and to make appointments thereto; 

(e) make Statutes; 

(f) consider and modify or cancel Ordinances; 

(g)  consider  and  pass  resolutions  on  the  annual  report,  the  annual  accounts  and  the  budget 
estimates  of  the  Institute  including  each  of  the  Institute  campuses  for  the  next  financial  year,  as  it 
thinks fit and submit them to the Central Government together  with a statement of its development 
plans; and 

(h)  exercise  such  other  powers  and  perform  such  other  duties  as  may  be  conferred  or  imposed 

upon it by this Act or the Statutes. 

(3) The Governing Council shall have power to appoint such committees as it considers necessary for 

the exercise of its powers and the performance of its duties under this Act. 

(4)  The  Governing  Council  shall  have  the  power  to  enter  into  arrangements  with  the  Central 
Government,  State  Governments  and  other  public  or  private  organisations  or  individuals  in  India  or 
outside  India  for  securing  and  accepting  endowments,  grants,  donations  or  gifts  to  the  Institute  on 
mutually agreed terms and conditions: 

Provided  that  the  conditions  of  such  grant,  donation  or  gift,  if  any,  shall  not  be  inconsistent  or  in 

conflict with the nature or objects of the Institute and the provisions of this Act. 

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(5)  The  Governing  Council  shall  have  the  power  to  take  over  and  acquire  by  purchase,  gift  or 
otherwise from Government and other public bodies or private individuals willing to transfer movable and 
immovable  properties,  endowments  or  other  funds  together  with  any  attendant  obligations  and 
engagements not inconsistent with the provisions of this Act. 

(6) The Governing Council may by specific resolution to this effect delegate to the Chairperson such 

of its powers for the conduct of business, as it may deem necessary. 

15. Senate.—1[The Senate of each Institute] shall consist of the following persons, namely:–– 

(a) the Director, ex officio, who shall be the Chairman of the Senate; 

(b) Dean of each Institute campus, ex officio; 

(c) Senior Professors of the Institute and of the Institute campuses; 

(d)  three  persons,  not  being  employees  of  the  Institute,  to  be  nominated  by  the  Chairperson  in 
consultation  with  the  Director,  from  amongst  educationists  of  repute,  one  each  from  the  fields  of 
science, engineering and humanities and at least one of them shall be a woman; 

(e)  one  alumnus  of  the  Institute  to  be  nominated  by  the  Chairperson  in  consultation  with  the 

Director; and 

(f) such other members of the staff as may be laid down in the Statutes. 

16.  Functions  of  Senate.—Subject  to  the  provisions  of  this  Act,  the  Statutes  and  the  Ordinances, 
2[the  Senate  of  an  Institute]  shall  have  the  control  and  general  regulation,  and  be  responsible  for  the 
maintenance of standards of instruction, education and examination in the Institute and shall exercise such 
other powers and perform such other duties as may be conferred or imposed upon it by the Statutes. 

17. Functions, powers and duties of Chairperson.—(1) The Chairperson shall ordinarily preside at 

the meetings of the Governing Council and at the convocations of the Institute. 

(2) It shall be the duty of the Chairperson to ensure that the decisions taken by the Governing Council 

are implemented. 

(3)  The  Chairperson  shall  exercise  such  other  powers  and  perform  such  other  duties  as  may  be 

assigned to him by this Act or the Statutes. 

18.  Director.—(1)  The  Director  of  3[each  of  the  Institutes]  shall  be  appointed  by  the  Central 
Government for a tenure of five years in such manner and on such terms and conditions of service as may 
be prescribed. 

(2) The Director shall be appointed on the recommendations of the Selection Committee constituted 

by the Central Government. 

(3) The Director shall be the principal executive officer of the Institute and shall be responsible for— 

(a)  proper  administration  of  the  Institute  and  for  imparting  of  instructions  and  maintenance  of 

discipline therein; 

(b) co-ordination of activities of all the Institute campuses; 

(c)  examining  the  development  plans  of  the  Institute  and  each  Institute  campus  and  to  approve 
such  of them  as  are considered  necessary  and  also to  indicate  broadly  the financial  implications  of 
such approved plans; and 

(d)  examining  the  annual  budget  estimates  of  the  Institute  and  each  Institute  campus  and  to 

recommend to the Central Government the allocation of funds for that purpose. 

(4) The Director shall exercise such other powers and perform such other duties as may be assigned to 

him by this Act, Statutes and Ordinances. 

(5) The Director shall submit annual reports and accounts to the Governing Council. 

1. Subs. by Act 38 of 2019, s. 14, for ―The Senate of each Institute‖ (w.e.f. 13-1-2020). 
2. Subs. by s. 15, ibid., for ―the Senate of the Institute‖ (w.e.f. 13-1-2020). 
3. Subs. by s. 16, ibid., for ―the Institute‖ (w.e.f. 13-1-2020). 

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(6) The Central Government shall have the power to remove the Director before expiry of his tenure, 

if it considers it appropriate to do so. 

19. Dean.—(1) The Dean of each Institute campus shall be appointed on such terms and conditions as 
may  be  laid  down  by  the  Statutes  and  shall  exercise  such  powers  and  perform  such  duties  as  may  be 
assigned to him by this Act or the Statutes or by the Director. 

(2) Without prejudice to the provisions of sub- section (1), the Dean of each Institute campus shall 
look  after  all  academic,  administrative,  research  and  other  activities  of  the  Institute  campus  in 
consultation with the Director. 

20. Registrar.—(1) The 1[Registrar of each Institute] shall be appointed on such terms and conditions 
as may be laid down by the Statutes and shall be the custodian of records, the common seal, the funds of 
the Institute and such other property of the Institute as the Governing Council shall commit to his charge. 

(2) The Registrar shall act as the Secretary of the Governing Council, the Senate and such committees 

as may be prescribed by the Statutes. 

(3) The Registrar shall be responsible to the Director for the proper discharge of his functions. 

(4) The Registrar shall exercise such other powers and perform such other duties as may be assigned 

to him by this Act or the Statutes or by the Director. 

21. Powers and duties of other authorities and officers.—The powers and duties of authorities and 

officers, other than those hereinbefore mentioned, shall be determined by the Statutes. 

22.  Grants  by  Central  Government.—For  the  purpose  of  2[enabling  an  Institute]  to  discharge  its 
functions  efficiently  under  this  Act,  the  Central  Government  may,  after  due  appropriation  made  by 
Parliament by law in this behalf, pay to the Institute in each financial year such sums of money and in 
such manner as it may think fit. 

23. Fund of Institute.—(1) 3[Every Institute] shall maintain a Fund to which shall be credited–– 

(a) all moneys provided by the Central Government; 

(b) all fees and other charges received by the Institute; 

(c) all moneys received by the Institute by way of grants, gifts, donations, benefactions, bequests 

or transfers; and 

(d) all moneys received by the Institute in any other manner or from any other source. 

(2) All moneys credited to the Fund shall be deposited in such banks or invested in such manner as 

the Institute may, with the approval of the Central Government, decide. 

(3)  The  Fund  shall  be  applied  towards  meeting  the  expenses  of  the  Institute  including  expenses 

incurred in the exercise of its powers and discharge of its duties under this Act. 

24.  Setting  up  of  Endowment  Fund.—Notwithstanding  anything  contained  in  section  23,  the 

Central Government may direct 4[any Institute] to–– 

(a) set up an Endowment Fund and any other Fund for specified purpose; and 

(b) transfer money from its Fund to Endowment Fund or any other Fund. 

25.  Accounts  and  audit.—(1)  5[Every  Institute]  shall  maintain  proper  accounts  and  other  relevant 
records and prepare an annual statement of accounts, including the balance sheet, in such form as may be 
prescribed, in  accordance  with  such  general  directions  as  may  be  issued  by  the  Central  Government  in 
consultation with the Comptroller and Auditor-General of India. 

1. Subs. by Act 38 of 2019, s. 17, for ―Registrar of the Institute‖ (w.e.f. 13-1-2020). 
2. Subs. by s. 18, ibid., for ―enabling the Institute‖ (w.e.f. 13-1-2020). 
3. Subs. by s. 19, ibid., for ―The Institute‖ (w.e.f. 13-1-2020). 
4. Subs. by s. 20, ibid., for ―the Institute‖ (w.e.f. 13-1-2020). 
5. Subs. by s. 21, ibid., for ―The Institute‖ (w.e.f. 13-1-2020). 

10 

 
                                                           
(2) The accounts of the Institute shall be audited by the Comptroller and Auditor-General of India and 
any  expenditure  incurred  by  him  in  connection  with  such  audit  shall  be  payable  by  the  Institute  to  the 
Comptroller and Auditor-General of India. 

(3)  The  Comptroller  and  Auditor-General  of  India  and  any  person  appointed  by  him  in  connection 
with  the  audit  of  the  accounts  of  the  Institute  shall  have  the  same  rights,  privileges  and  authority  in 
connection with such audit as the Comptroller and Auditor-General of India, generally has in connection 
with  the  audit  of  the  Government  accounts,  and,  in  particular,  shall  have  the  right  to  demand  the 
production of books, accounts, connected vouchers and other documents and papers and to inspect any of 
the offices of the Institute. 

(4) The accounts of the Institute as certified by the Comptroller and Auditor-General of India or any 
other  person appointed  by  him  in  this  behalf,  together  with  the  audit report  thereon  shall  be forwarded 
annually  to  the  Central  Government  and  that  Government  shall  cause  the  same  to  be  laid  before  each 
House of Parliament. 

26.  Pension  and  provident  fund.—(1)  1[Every  Institute]  shall  constitute,  for  the  benefit  of  its 
employees,  including  the  Director,  such  pension,  insurance  and  provident  funds  as  it  may  deem  fit,  in 
such manner and subject to such conditions as may be laid down in the Statutes. 

(2)  Where  any  provident  fund  has  been  constituted  under  sub-section  (1),  the  Central  Government 
may declare that the provisions of the Provident Funds Act, 1925 (19 of 1925) shall apply to such fund as 
if it were a Government provident fund. 

27.  Appointment  of  staff.—All  appointments  of  the  staff  of  2[an  Institute],  except  that  of  the 

Director, shall be made in accordance with the procedure laid down in the Statutes by–– 

(a)  the  Governing  Council,  if  the  appointment  is  made  on  the  academic  staff  in  the  post  of 
3[Principal Designer] or Professor or above or if the appointment is made on the non-academic staff 
in any cadre, the maximum of the pay-scale for which is the same or higher than that of  3[Principal 
Designer] or Professor; and 

(b) the Director, in any other case. 

28.  Statutes.—Subject  to the  provisions  of  this  Act, the  Statutes  may  provide  for  all  or  any  of  the 

following matters, namely:— 

(a) conferment of honorary degrees; 

(b) formation of departments of teaching, establishment of workshops, laboratories and studios; 

(c)  fees  to  be  charged  for  courses  of  study  in  the  Institute  including  Institute  campus  and  for 

admission to the examinations of degrees, diplomas and certificates of the Institute; 

(d) institution of fellowships, scholarships, exhibitions, medals and prizes; 

(e) qualifications of teachers of the Institute; 

(f)  classification,  method  of  appointment  and  the  determination  of  the  terms  and  conditions  of 

service of officers, teachers and other staff of the Institute; 

(g)  reservation  of  posts  for  the  Scheduled  Castes,  the  Scheduled  Tribes  and  Other  Backward 

Classes of persons as may be determined by the Central Government; 

(h) constitution of pension, insurance and provident funds for the benefit of the officers, teachers 

and other staff of the Institute; 

(i) constitution, powers and duties of the authorities of the Institute and Institute campuses; 

(j) establishment and maintenance of halls and hostels; 

(k) conditions of residence of students of the Institute and the levying of the fees for residence in 

the halls and hostels and other charges; 

1. Subs. by Act 38 of 2019, s. 22, for ―The Institute‖ (w.e.f. 13-1-2020). 
2. Subs. by s. 23, ibid., for ―the Institute‖ (w.e.f. 13-1-2020). 
3. Subs. by s. 23, ibid., for ―Senior Designer‖ (w.e.f. 13-1-2020). 

11 

 
                                                           
(l) manner of filling up of vacancies among members of the Governing Council; 

(m) allowances to be paid to the Chairperson and members of the Governing Council; 

(n) authentication of the orders and decisions of the Governing Council; 

(o) meetings of the Governing Council, Senate, or any Committee, the quorum at such meetings 

and the procedure to be followed in the conduct of their business; 

(p) any other matter which by this Act is to be or may be prescribed by the Statutes. 

29.  Statutes  how  to  be  made.—(1)  The  first  Statutes  of  1[each  Institute]  shall  be  framed  by  the 
Governing Council with the previous approval of the Visitor and a copy of the same shall be laid as soon 
as may be before each House of Parliament. 

(2) The Governing Council may, from time to time, make new or additional Statutes or may amend or 

repeal the Statutes in the manner hereinafter in this section provided. 

(3) Every new Statute or addition to the Statutes or any amendment or repeal of a Statute shall require 
the previous approval of the Visitor who may assent thereto or withhold assent therefrom or remit it to the 
Governing Council for reconsideration. 

(4) A new Statute or a Statute amending or repealing an existing Statute shall have no validity unless 

it has been assented to by the Visitor. 

30.  Ordinances.—Subject  to  the  provisions  of  this  Act  and  the  Statutes,  the  2[Ordinances  of  each 

Institute] may provide for all or any of the following matters, namely:–– 

(a) admission of the students to the Institute including Institute campus; 

(b) reservation in admission to various courses or programmes of the Institute for the Scheduled 

Castes, the Scheduled Tribes and Other Backward Classes; 

(c) courses of study to be laid down for all degrees, diplomas and certificates of the Institute; 

(d)  conditions  under  which  students  shall  be  admitted  to  the  degree,  diploma  and  certificate 

courses and to the examinations of the Institute and award of degrees, diplomas and certificates; 

(e) conditions for award of fellowships, scholarships, exhibitions, medals and prizes; 

(f)  conditions  and  mode  of  appointment  and  duties  of  examining  body,  examiners  and 

moderators; 

(g) conduct of examinations; 

(h) maintenance of discipline among the students of the Institute; and 

(i)  any  other  matter  which  by  this  Act  or  the  Statutes  is  to  be  or  may  be  provided  for  by  the 

Ordinances. 

31. Ordinances how to be made.—(1) Save as otherwise provided in this section, Ordinances shall 

be made by the Senate. 

(2) All Ordinances made by the Senate shall have effect from such date as it may direct, but every 
Ordinance  so  made  shall  be  submitted,  as  soon  as  may  be,  to  the  Governing  Council  and  shall  be 
considered by the Governing Council at its next meeting. 

(3) The Governing Council shall have power by resolution to modify or cancel any such Ordinance 
and such Ordinance shall from the date of such resolution stand modified accordingly or cancelled, as the 
case may be. 

32. Arbitral Tribunal.—(1) Any dispute arising out of a contract  3[between an Institute] and any of 
its employees shall, at the request of the employee concerned or at the instance of the Institute, be referred 

1. Subs. by Act 38 of 2019, s. 24, for ―the Institute‖ (w.e.f. 13-1-2020). 
2. Subs. by s. 25, ibid., for ―Ordinances of the Institute‖ (w.e.f. 13-1-2020). 
3. Subs. by s. 26, ibid., for ―between the Institute‖ (w.e.f. 13-1-2020). 

12 

 
                                                           
to an Arbitral Tribunal consisting of one member appointed by the Institute, one member nominated by 
the employee and an umpire appointed by the Visitor. 

(2) The decision of the Arbitral Tribunal shall be final and shall not be questioned in any court. 

(3)  No  suit  or  proceeding  shall  lie  in  any  court  in  respect  of  any  matter  which  is  required  by  sub-

section (1) to be referred to the Arbitral Tribunal. 

(4) The Arbitral Tribunal shall have power to regulate its own procedure. 

(5)  Nothing  in  any  law  for  the  time  being  in  force  relating  to  arbitration  shall  apply  to  arbitration 

under this section. 

CHAPTER III 

MISCELLANEOUS 

33.  Acts  and  proceedings  not  to  be  invalidated  by  vacancies,  etc.—No  act  of  1[any  Institute]  or 
Governing Council or Senate or any other authority, set up under this Act or the Statutes, shall be invalid 
merely by reason of— 

(a) any vacancy in, or defect in the constitution thereof; or 

(b) any defect in the election, nomination or appointment of a person acting as a member thereof; 

or 

(c) any irregularity in its procedure not affecting the merits of the case. 

34.  Sponsored  schemes.—Notwithstanding  anything  contained  in  this  Act,  whenever  2[an  Institute 
receives] funds from any Government, the University Grants Commission or any other agency including 
industry sponsoring a research scheme or a consultancy assignment or a teaching programme or a Chaired 
Professorship or a scholarship, etc., to be executed or endowed at the Institute,— 

(a) the amount received shall be kept by the Institute separately from the Fund of the Institute and 

utilised only for that purpose; and 

(b)  the  staff  required  to  execute  the  same  shall  be  recruited  in  accordance  with  the  terms  and 

conditions stipulated by the sponsoring organisations: 

Provided  that  any  money  remaining  unutilised  shall  be  transferred  to  the  Endowment  Fund  set  up 

under section 24 of this Act. 

35.  Power  of  Institute  to  grant  degrees,  etc.—3[Every  Institute]  shall  have  the  power  to  grant 
degrees, diplomas, certificates and other academic distinctions under this Act, which shall be equivalent 
to  such  corresponding  degrees,  diplomas,  certificates  and  other  academic  distinctions  granted  by  any 
University or Institute established or incorporated under any other law for the time being in force. 

36. Powers of Central Government to issue directions.—The Central Government may give such 
directions  as  it  may  deem  necessary  4[to  any  Institute]  for  effective  administration  of  this  Act  and  the 
Institute shall comply with such directions. 

37. Institute to be public authority under Right to Information Act, 2005.—The provisions of the 
Right  to  Information  Act,  2005  (22  of  2005)  shall  apply  to  5[every  Institute],  as  if  it  were  a  public 
authority as defined in clause (h) of section 2 of the Right to Information Act, 2005. 

38.  Power  of  Central  Government  to  make  rules.—(1)  The  Central  Government  may,  by 

notification, make rules to carry out the purposes of this Act. 

(2)  In  particular  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

1. Subs. by Act 38 of 2019, s. 27, for ―the Institute‖ (w.e.f. 13-1-2020). 
2. Subs. by s. 28, ibid., for ―the Institute receives‖ (w.e.f. 13-1-2020). 
3. Subs. by s. 29, ibid., for ―The Institute‖ (w.e.f. 13-1-2020). 
4. Subs. by s. 30, ibid., for ―to the Institute‖ (w.e.f. 13-1-2020). 
5. Subs. by s. 31, ibid., for ―the Institute‖ (w.e.f. 13-1-2020). 

13 

 
                                                           
(a)  the  manner  of  appointment  of  the  Director  and  terms  and  conditions  of  his  service  under            

sub-section (1) of section 18; 

(b) the form and the manner in which the books of account of the Institute shall be maintained 

under sub-section (1) of section 25; 

(c) any other matter which is required to be, or may be, prescribed. 

(3)  Every  rule  made  by  the  Central  Government  shall  be  laid,  as  soon  as  may  be  after  it  is  made, 
before  each  House  of  Parliament,  while  it  is  in  session,  for  a  total  period  of  thirty  days  which  may  be 
comprised in one session or in two or more successive sessions, and if, before the expiry of the session, 
immediately following the session or the successive sessions aforesaid, both Houses agree in making any 
modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter 
have effect only in such modified form or be of no effect, as the case may be; so, however, that any such 
modification or annulment shall be without prejudice to the validity of anything previously done under 
that rule. 

39. Transitional provisions.—Notwithstanding anything contained in this Act–– 

(a)  the  1[Governing  Council  of  an  Institute]  functioning  as  such,  immediately  before  the 
commencement of this Act, shall continue to so function until a new Governing Council is constituted 
for the Institute under this Act, but on the constitution of a new Governing Council under this Act, the 
members of the Governing Council holding office before such constitution shall cease to hold office; 

(b)  the  Policy  and  Planning  Committee  of  the  Society,  functioning  as  such  before  the 
commencement of this Act, shall be deemed to be the Senate constituted under this Act and continue 
to so function until a new Senate is constituted for the Institute under this Act; 

(c)  until  the  first  Statutes  and  Ordinances  are  made  under  this  Act,  the  rules  and  regulations, 
instructions, guidelines and bye-laws of the Society, in force immediately before the commencement 
of this Act, shall continue to apply to the Institute and Institute campuses  2***, in so far as they are 
not inconsistent with the provisions of this Act. 

3[Explanation I.--The reference in this section to the commencement of this Act shall, in relation to 

the National Institute of Design, Ahmedabad, be deemed to be the 16th day of September, 2014. 

Explanation II.--The reference in this section to the commencement of this Act shall, in relation to the 

National Institutes of Design in the States of Madhya Pradesh, Assam, Haryana and Andhra Pradesh, be 

construed  as  the  reference  to  the  date  on  which  the  provisions  of  the  National  Institute  of  Design 
(Amendment) Act, 2019 comes into force.] 

40.  Statutes  and  Ordinances  to  be  published  in  the  Official  Gazette  and  to  be  laid  before 
Parliament.—(1)  Every  Statute  or  Ordinance  made  under  this  Act  shall  be  published  in  the  Official 
Gazette. 

(2) Every Statute or Ordinance made under this Act shall be laid, as soon as may be after it is made, 
before  each  House  of  Parliament,  while  it  is  in  session,  for  a  total  period  of  thirty  days  which  may  be 
comprised in one session or in two or more successive sessions, and if, before the expiry of the session 
immediately following the session or the successive sessions aforesaid, both Houses agree in making any 
modification in the Statute or Ordinance or both Houses agree that the Statute or Ordinance should not be 
made, the Statute or Ordinance shall thereafter have effect only in such modified form or be of no effect, 
as the case may be; so, however, that any such modification or annulment shall be without prejudice to 
the validity of anything previously done under that Statute or Ordinance. 

(3)  The  power  to  make  Statutes  or  Ordinances  shall  include  the  power  to  give  retrospective  effect 
from a date not earlier than the date of commencement of this Act to Statutes or Ordinances or any of 

1. Subs. by Act 38 of 2019, s. 32, for ―Governing Council of the Institute‖ (w.e.f. 13-1-2020). 
2. The words ―located at Bengaluru or Gandhinagar, as the case may be‖ omitted by s. 32, ibid. (w.e.f. 13-1-2020). 
3. Ins. by s. 32, ibid. (w.e.f. 13-1-2020). 

14 

 
                                                           
them but no retrospective effect shall be given to any Statute or Ordinance so as to prejudicially affect the 
interests of any person to whom such Statutes or Ordinances may be applicable. 

1[Explanation I.—The reference in this section to the commencement of this Act shall, in relation to 

the National Institute of Design, Ahmedabad, be deemed to be the 16th day of September, 2014. 

Explanation II.—The reference in this section to the commencement of this Act shall, in relation to 

the National Institutes of Design in the States of Madhya Pradesh, Assam, Haryana and Andhra Pradesh, 

be  construed  as  the  reference  to  the  date  on  which  the  provisions  of  the  National  Institute  of  Design 
(Amendment) Act, 2019 comes into force.] 

41. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions  of 
this Act, the Central Government may, by order published in the Official Gazette, make such provisions 
or give such directions not inconsistent with the purposes of this Act, as appears to it to be necessary or 
expedient for removing the difficulty: 

Provided that no such order shall be made after the expiry of two years from the appointed day. 

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of Parliament. 

1. Ins. by Act 38 of 2019, s. 33 (w.e.f. 13-1-2020). 

15 

 
 
 
                                                           
1[THE SCHEDULE 

[See sections 2, 3(g), (ka), (m), 4 (1) and 5 (a)] 

Sl. No. 

Name of the State 

Name of the Society 

(1) 

1. 

2. 

3. 

4. 

Name of the institutions 
incorporated under this Act 
(4) 

(2) 

Gujarat 

(3) 

The National Institute of Design, 

National Institute of Design, 

Ahmedabad, a Society registered 

Ahmedabad 

under the Societies Registration Act, 

1860. 

Madhya Pradesh 

The National Institute of Design, 

National Institute of Design, 

Bhopal, a Society registered under 

Madhya Pradesh 

the Societies Registration Act, 1860. 

Assam 

The National Institute of Design, 

National Institute of Design, 

Jorhat, Assam, a Society registered 

Assam 

under the Societies Registration Act, 

1860. 

Haryana 

The National Institute of Design, 

National Institute of Design, 

Kurukshetra, a Society registered 

Haryana 

under the Societies Registration Act, 

1860. 

5. 

Andhra Pradesh 

The National Institute of Design, 

National Institute of Design, 

Andhra Pradesh, a Society registered 

Andhra Pradesh.] 

under the Societies Registration Act, 

1860. 

1. Ins. by Act 38 of 2019, s. 34 (w.e.f. 13-1-2020). 

16 

 
 
 
                                                           
